Azernews.Az

By Bloomberg

Emerging-market stocks rose amid investor bets Greece’s standoff with creditors won’t result in the country’s exit from the euro area. Equities in Russia climbed with the ruble as crude’s rally eclipsed concern a cease-fire in Ukraine is faltering.

Russia’s ruble headed for a five-week high as recovering oil prices boosted the appeal of assets in the world’s biggest energy exporter. Dubai’s DFM General Index increased 0.9 percent, while Chinese equities had the best seven-day advance before the Lunar New Year holiday since 2007.

Talks over Greece’s debt stopped after Finance Minister Yanis Varoufakis refused to meet demands that his country request an extension of its existing bailout program. The cost of a Greek exit from the euro area would be “too high” for the nation and investors are betting “a compromise will be found,” according to BNP Paribas SA.

Equity markets will react “more strongly” if the likelihood of a Greek default increases substantially, Martial Godet, the head of emerging-market equity and derivatives strategy at France’s largest bank in Paris, said by e-mail. “Oil moving higher is helping Russia.”

The MSCI Emerging Market Index added 0.1 percent to 985.41 as of 12:47 p.m. in London. All but one industry group in the gauge advanced, led by energy shares, which jumped 0.7 percent. OAO Gazprom and OAO Lukoil paced the increase, boosting Russia’s benchmark index by 1.1 percent.

Oil Gains

Oil extended three consecutive weekly gains in London, rising as much as 1.5 percent on Tuesday, as OPEC ministers signaled confidence that the market can sustain its rebound.

The ruble increased for a third day, appreciating to 62.3840 against the dollar, after a cease-fire in Ukraine came into effect over the weekend. The government’s two-year securities rose a fifth day as the Finance Ministry said it will offer 15 billion rubles ($241 million) of its longest-maturity debt in three months on Wednesday, after raising the most in a year last week.

Investors are watching the fighting between pro-Russian separatists and government troops as the risk of tougher European Union and U.S. sanctions threatens to further derail the nation’s foundering economy.

Emirates Integrated Telecommunications Co. led a 0.9 percent increase in Dubai’s DFM General Index. The phone company known as Du is set to announce quarterly results later this week, data compiled by Bloomberg show.

Nigeria’s All Share Index surged 2.7 percent, trimming it’s year-to-date drop to 18 percent. The equity index tumbled to the lowest level in more than two years last week as the naira’s retreat to a record prompted investors to sell assets in Africa’s biggest economy.

Stock Valuations

MSCI’s developing-nation gauge has risen 3 percent this year and trades at 11.7 times 12-month projected earnings, data compiled by Bloomberg show. The MSCI World Index has gained 2.6 percent in the period and is valued at a multiple of 16.6.

The Hang Seng China Enterprises Index gained 0.5 percent. The Shanghai Composite Index capped the longest winning streak since Nov. 28. The gauge has rallied 52 percent during the past 12 months amid speculation that monetary stimulus will revive growth in the world’s second-largest economy.

Investors withdrew money from U.S. exchange-traded funds that invest in developing countries for a second straight week, bringing this year’s outflows to $1.81 billion.

The premium investors demand to hold emerging-market debt over U.S. Treasuries narrowed two basis points to 360 basis points, according to JPMorgan Chase & Co. indexes.

Markets in Taiwan, Vietnam and India are closed for holidays.